Australian Capital Territory $1 Billion in the Red as Health Spending Rises

A small but increasingly older population base means the territory is struggling with structural problems that may be unsolvable.

ACT chief minister Andrew Barr at the Jobs And Skills Summit in Canberra, Australia, on Sept. 1, 2022. Martin Ollman/Getty Images

The small Australian Capital Territory (ACT) is facing a budget deficit of almost $1 billion, which is expected to worsen over the next 35 years, and is now pushing the federal government to come to the rescue.

ACT Labor Treasurer Chris Steel has blamed the Territory’s small taxation base (centred around the public service) and aging population for the parlous economic prospects of the jurisdiction.